RBA Governor's Case for Financial Review of NBN Is Too Late

Glenn Stevens the Governor of the Reserve bank says he supports a check on the National Broadband Network. You can't really take this man seriously. He obviously just said it to give a non-partisan, either party approach to government. Getting the Coalition off his back was his main aim. After all this time, he says this now. It is obviously late, very late indeed, with the legislation to change the structure of Telstra going through parliament at this very moment.

The Labor Government wants to stop any further investigation into the full cost of the NBN, particularly now at the end of parliamentary sitting. It wants to go away and breath a sigh of satisfaction. All government projects end up costing more than was budgeted. The Coalition knows this and if it can keep the pressure for financial investigation going it is on a winner. Though, what it can achieve by this is unclear. Labor surely has support to pass anything that is needed to get this monster of a project up and running.

Australia needs the new Internet system just to remain credible in the world. If a third of the population fully take up the capacity offered it will be a surprise. Ordinary households only need a basic service and one that is only a bit faster than that available now - city people that is. Business and rural people will be the big winners. If the industry was left to its own resources as at present those in the bush would be on dial-up permanently.